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Vedanta Resources has invested 8,000,000 in a new mining project lasting three years. Depreciation is charged on a straight line basis to zero over the

Vedanta Resources has invested 8,000,000 in a new mining project lasting three years. Depreciation is charged on a straight line basis to zero over the course of the project. The project generates pre-tax income of 2,000,000 each year. The pre-tax income already includes the depreciation expense. If the tax rate is 23 per cent, what is the project's average accounting return (AAR)?

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